ZoneBitcoin EditorialEl Salvador's Congress has just passed a law that has been eagerly awaited by the global bitcoin community. Foreign investors who own bitcoin will be able to obtain Salvadoran citizenship in a simplified process. The new law, supported by the " New ideas " Of the president Nayib Bukele, completes the program " Fredom Visa » which is already full at the time of writing this article.
This, limited to 1000 people, is issued to foreigners who invest the equivalent of 1 million dollars in bitcoin (or in Tether USDT) to be able to legally reside and work in the pro-bitcoin Latin American country.
Attract foreign investors
The goal of this law is to attract foreign investors who own bitcoin. Salvadoran citizenship would then be granted to people who make bitcoin "donations" to government programs. We do not know at this time, the minimum amount required for bitcoin donations.
For the moment, the Salvadoran government has not yet made an official announcement on this new law which should be confirmed in a few days. However, the “ National Bitcoin Office » (National Bitcoin Office), or ONBTC has already relayed the information on social networks. The office is the official administrative unit responsible for managing all bitcoin projects in the country, including those related to mining such as Lava Pool, for example. The general idea of foreign donations would help fund “Bitcoin City,” Bukele’s program to attract crypto companies and investors in exchange for tax breaks and other fiscal benefits.
This announcement is part of the campaign program for the presidential election of El Salvador scheduled for February 4, 2024. The current president is running as a candidate and does not hide his ambitions to make Bitcoin a real axis of development for the country . Since this year, the School programs now teach students about bitcoin with the “Mi Primer Bitcoin” project"
A new passport in exchange for bitcoin
The new reform will allow foreign donors to bypass the administrative formalities of naturalization which require living for 5 years permanently in the country or being married to a Salvadoran citizen.
It is important to remember that many cryptocurrency holders are looking crypto-friendly countries to reside and potentially evade taxes. Companies like Plan B Passport offer interested individuals destinations that issue secondary passports in exchange for a bitcoin investment in a partner country.
Although there are, in fact, other countries that issue a passport in exchange for a financial investment, El Salvador is the only country where bitcoin is legal tender. In Europe, there are countries that do not tax gains in cryptocurrencies who wish to attract cryptocurrency holders.
Thus, with this new announcement, El Salvador confirms its intention to become a tax haven for bitcoiners.
See also:
- El Salvador makes bitcoin legal tender
- Argentina allows private bitcoin contracts
- El Salvador’s “Mi primer Bitcoin” educational program
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Note: No financial advice is given in this or any other article on this blog. This is information of which you are the sole judge and master. Be responsible with your investments and only invest as much as you are willing to lose.
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